Introduction

There is a connection between skills and the economy, a link that creates an unbreakable bond. Positive increases in the levels of skills will result in a rise in the economic value of a country. This correlation persists for market connectivity and sets the exchange rate or value in which skills are recognised.

The skills exchange

In finance, an exchange rate is the rate at which one currency will be exchanged for another currency. Currencies are most commonly national currencies and they set the perceived value for products and commodities.

The exchange rate is also regarded as the value of one country's currency in relation to another currency, there are similar rate differences in skills across countries. It is critical that we deliver a level skill playing field across Europe; one where there is no difference in the exchange rate.

In education and training, a skill is a type of work or activity which requires special training and knowledge. Essentially, skills are the knowledge and ability that enables you to do something well.

In using the word currency as a term of measurement we are going beyond the simple linear measurement system; we are quantifying, qualifying, and monetising the value and importance of skills in today's knowledge-based economy. The currency of skills emphasises that skills are an asset that individuals possess, similar to a currency that can be exchanged for various opportunities and benefits.

Project-focused organisations especially in the construction sector are faced with a demand of skills in each project, specifically the demand for energy efficiency skills as they seek to decarbonise the construction sector. Although the contracting of participating organisations is seldomly based on the supply of skills, with the concept of currency of skills, it becomes possible to score tenders not only on financial variables but also on skill variables.

The metrics of skills

Instead of using and qualifying skills as a simple qualification or resulting in a certificate, we will extend the system to value skills against seven different metrics and measure the skills exchange rate against these.

1. Economic Value

2. Career Opportunity

3. Lifelong Learning

4. Economic Value

5. Social Mobility

6. Global Competitiveness

7. Skills Fit 

The ARISE team will explore the currency of skills over the seven metrics listed above in a series of articles over the coming months on the BUILD UP website. The articles are designed to explore the concept of skills as a valuable currency in today's rapidly evolving job market and to stimulate discussion, highlighting the importance of continuously developing and refining skills to thrive in today’s economy in transition.

Economies require currencies to function. The skills economy is a concept in which governments, employers, and the workforce recognise being highly skilled as a valuable currency for success. Skills have a value that can be translated directly into monetary value.

In today’s digitally transformed world, the evolution of the construction workforce and the construction jobs of the future are moving toward a skills-based economy. This economy will be financed with skills as the currency of the future.

Skills investment

Skills are the new currency of work. With advances in technology and unprecedented economic, social, and environmental transitions impacting across our working environment, an agile workforce with the skills to meet the required needs create real value for the industry and the economy. Recruitment in the future will be based on what people can do, not what their credentials say they know. As the construction sector evolves, skills have become the currency that drives success. From technical expertise to project management, communication to sustainability, professionals must continuously develop and enhance their skills to stay competitive.

Investing in skills not only benefits individuals but also contributes to the growth and advancement of the industry as a whole. By prioritising skills development and addressing the skills shortage, the construction sector can build a skilled workforce capable of delivering innovative, sustainable, and high-quality projects.

Conclusions

In the dynamic landscape of the construction sector, skills have become the new currency that defines success. Gone are the days when projects were only evaluated based on their budget or completion time. Today, the focus has shifted to the expertise and capabilities of the workforce, with skills taking centre stage. From architects to engineers, project managers to labourers, the construction industry is recognising the immense value of a skilled workforce.

The future of construction belongs to those who embrace lifelong learning, adapt to technological advancements, and possess a diverse skillset. By recognising the power of skills as a currency, professionals can shape the future of the construction sector and thrive in a rapidly changing industry.

The ARISE project is developing a new methodology and revolutionising the skills exchange in the built environment. We also need to change the way we view skills as a mechanism of harnessing the journey to success. We must also emphasise the importance of continuously investing in skills development to adapt to evolving market demands and achieve personal and professional success. We would also encourage readers to embrace a lifelong learning mindset and leverage their diverse skill sets to thrive in a rapidly changing world.